Exam 11: Pricing Products and Services

What is bait and switch? Give an example of it.

When Kroger, a national supermarket chain, uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level of $4.29), it is attempting to

A maximizing current profit pricing objective implies that a company chooses to

Which one of the following statements regarding bundle pricing is most accurate?

Which of the following companies would be most likely to use target return-on-investment pricing?

Companies use a price premium to assess whether their products and brands are priced above, at, or below the market. This price premium equals

Customary pricing refers to

A dynamic pricing policy allows marketers to respond to

The two forms of cost-plus pricing are

Each month, the owner of a car wash pays $2,500 in rent, $500 in utilities, $750 interest on the business loan, an insurance premium of $200, and $250 on advertising on local bus routes. A full-service car wash is priced at $10.50. Unit variable costs for the car wash are $7.50. At what level of revenue will the car wash break even?

Four cost concepts are important in pricing decisions: total cost, variable cost, unit variable cost, and

Market share is the ratio of the ________ to those of the industry, including the firm itself.

Carmex uses all of the following approaches to setting the price of its products except which?

You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989. Since Bosch uses its pricing strategy to project a high-quality product image, it is most likely using ________ pricing.

Demand-oriented approaches weigh factors that underlie expected ________ more heavily than such factors as cost, profit, and competition when selecting a price level.

Price fixing is

In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery. But unlike Duracell, Energizer priced its batteries at a low initial price, believing that consumers were too price-sensitive to pay more in this category. In this case, Energizer used

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Which of the following is one of four common approaches to selecting an approximate price level?

SHAPE magazine is targeted at young women seeking healthier lifestyles. At a price of $3.00 per copy, 1.25 million copies are sold. If the price per issue is increased to $3.25, only 1 million copies would be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. From the information provided here, what is SHAPE magazine's total revenue obtained at the lower $3.00 price?

Three different objectives relate to a firm's profit. One objective, known as ________, is common in many firms because the targets can be set and performance measured quickly.